Indian officials are planning to continue negotiating with the US for a bilateral trade deal by fall of this year even if US President Donald Trump follows through with threatened tariffs this week, people familiar with the matter said.

The US will impose 25% tariffs on goods imported from India "plus an unspecified penalty" for buying Russian oil and weapons, President Trump has said.

President Donald Trump is ratcheting up the pressure on India, calling into question the prospects of a deal with a key US trading partner just days before his tariff deadline.